Evergrande crash could fuel new Bitcoin (BTC) rally
Evergrande is in trouble again. However, experts believe that could fuel Bitcoin’s growth.
The notorious Chinese real estate giant Evergrande, which triggered one of the recent dumps in both the stock and cryptocurrency markets, continues to drown in problems. At the same time, while the company is trying to raise funds to pay off debts, trading in shares of the company is being suspended in Hong Kong.
Evergrande is pulling out all the stops
Evergrande is currently trying to raise about $5 billion (~£3.69 billion) by selling half of its property management division to Hopson Development. At the same time, Evergrande’s outstanding obligations amount to about $305 billion (~£225 billion), and the company itself is on the verge of default.
China has already tried to save Evergrande and, amid the current crisis, even pumped about $20 billion into the banking system. But, seeing that recently, the authorities have warned investors about the likely fate of the real estate giant, the Chinese government is not so sure that the enterprise will last.
Predictions about the outcome are ambiguous
At the same time, the cryptocurrency market started the new month with good growth and an increase in its own capitalization to $2.1 trillion (~£1.5 trillion). Many investors are confident that the last quarter of the year will be successful for digital assets and some experts even claim that the Evergrande crisis may create conditions under which the price of BTC will set a new absolute maximum.
It’s widely believed that market tensions caused by the Chinese real estate giant will prompt investors to seek assets to hedge their risks. And Bitcoin is currently one of the best such tools.
Recevez un condensé de l’actualité dans le monde des cryptomonnaies en vous abonnant à notre nouveau service dequotidienne et hebdomadaire pour ne rien manquer de l’essentiel Cointribune !
I believe in the bright future of crypto. I have been investing since 2017 and look to share my experience in, and thoughts on, crypto and the blockchain.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.